Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1887-01-07

themselves. 1t IL therefore cause for con-
graduation that 80 much has been realized in
the way Of relief. Briefly outlined, there hos
been secured under this law, through the
agency Of the commission, free and open
market, with tho right OF unrestricted ship.
ment for grain on every line Of railway In the
state save one; material reduction ON all the
roads OF rates charged for the traus portation
OF grain, live stock, lumber, wood and general
farm products, am bunting ia the aggregate to
over one million dollars per annum; a general
reduction OF all passenger tariffs to maximum
charge of three cents per mile. and q virtual
abo ition OF tho odious transit system, by an
elimination Of its Objectionable and burden
some features.
These results have been reached through
the patient, persistent and prolonged efforts
of the commission, involving an
EXHAUSTIVE INVESTIGATION
OF the subject Of railway transportation in its
many phases and to its remotest detail, and
elaborate illustration by comparison Of its rel
alive cost Us between different companies under
varied and diverse conditions. The facts de-
veloped by this research fortified the commits
sion In tho presentation of It's demands Spon
the companies, and secured concessions which
otherwise 1t would hardly have been possible
to obtain. In but ono insa have the com.
mission had to resort to the courts to enforce
its demands, and in this case the lower court
now pending the supreme court.
Minnesota has now fairly inaugurated q
policy respecting state supervision and control
Of railroad companies which, II sufficiently
strengthened, and wisely and firmly admins
tered, will lead, I believe, to such successful.
and just adjustment Of the relations that
should obtain between those corporations and
tho public, as is possible unde. separate and
Independent state action. The problem can
not, however, reach Q solution entirely salts
factory, until the general government shall'
supplement state action by the adoption Of q
federal policy, which shall have IN view the
determination Of questions relating to inter-
country, with marked unsnimity, is demand
ing of congress legislation to this end. 1t re-
mains to be seen how long adverse influences
shall postpone its enactment
The commissioners recommend such amend
ments and changes Ia the law Is their exper-
fence and Investigations have suggested are
necessary to make it more effective. T be-
and earnestly invoke your early action re-
speeting the additional legislation contem-
plated in the crafts Of laws they submit for
your consideration.
Clearly In my view, the commissioners should
be authorized TO revise and amend the tariffs
Of the railroad companies respecting rates
char ged for transportation OF freight and pas
eengers. II upon complaint, or otherwise. 1t
shall appear 70 the commission, after caseful
investigation, that such rates are in any respect
"unequal, unjust or unreasonable" 1t should be
authorized to require and compel such changes
as shall make them equal. reasonable and
just. There can be no good ground of OBJ
lection to this regulation upon the part Of the
companies themselves. Indeed, they should
rather wish to see 1t established. as the pro-
cess of its enforcement would give oppor-
tunity for such vindicstion of their equitable
policy respecting the p iblic, Is the facts in
each case would warrant.
The excessive and
FICTITIOUS CAPITALIZATION
Of he property Of railway corporations is T.
proper subject for Legislative consideration.
panies, after realizing from the sale Of their
bonds money sufficient to build and equip
their lines, to issue in addition stock to an
equal or greater amount repre-
.enttng as . rule no value what
ever, but appropriated us gratuity by the
syndicate controlling the franchises OF the
company. To give these false issues of Sc
curiiiss real value, dividends muss be earned
by the road and paid thereon. The practical
effect Of this Is the preparation Of u fraud
up,n the public. Rates Of transportation
must be fixed high enough to realize net earn.
iugs sufficient to pay these dividends after
fixed charges are met. As rule, II complaint
&c Abuc Ludt EoLcb 0I6 u16u duu SuhL COnmO-
dities will not bear cost Of transportation, the
company responds that 1t IL charging only
what IS necessary to earn fair income upon
its Investment, and perhaps refers to its sworn
statements made to the board Of commission.
ers US 10 the amount Of such,
Investment s which always includes ah,s
practice does not require elaboration toexpose
s op ,ressive and dishonest character, but it
lounjy calls for remedy. The drafts for acts
proposed by the commissioners, to prohibit the
issuing Of false, fraudulent and part paid or
paid shares OF stock OF railroad companies
an to "reguate the proceedings OF railroad
Companies desiring to Increase their capital
stock," will protect the public against q.
growth Of the evil. The evident remedy, AZ
regards existing corporations, IL an adjustment
Of their revenues and dividends upon the basis
OF y fair and liosral estimate OF the actual cost
or value Of taeir properties.
The incorporation int the fundamental law
of the state Of an am. ndment asserting the
Ill p Jwer Of the state Oh 10 corporate control,
is q r. commentator Of the commissioners in
which cordially concur. Though this prin-
ctple IL sustained by the Courts 1t Ia not wholly
admitted by the corporations, As An authority
coming from the constitution 1t would COM
mand acquiescence.
The iabors OF the board under the law for
the regulation OF warehouses and the inspec-
ton Of grain have resulted In the Inauguration,
OF u system Of state inspection and weighing
which has
WORKED MOST SATISFACTORILY.
The grades established and rules adopted by
the board for the handling OF grain have
had the effect to remove the
cause for much Of the complaint
thai had existed among farmers and country
Shippers, Of irregularities and abuses respect.
lug the disposition of their property. Minne-
sofa grades Of wheat are now the recognized
standard In eastern and European markets,
mands the full confidence Of the trade. In
doubleday the adoption Of this system has
added appreciably TO the market value Of on,
wheat and resulted 10 . ,liziDg much moro to
the producer than he would have received
under the old order OF things. The grades
aud rules OF inspection as first established
proved 80 satisfactory that any change in
them was generally objected to by farmers and
dealers at the commencement Of the present